Disney+ Hotstar Loses another Whopping 12.5 million subscribers After Letting go of IPL Rights

Mumbai,(India), 10/08/23: Disney+ Hotstar lost 12.5 million subscribed members in the April-June quarter as India’s largest streaming platform continued to lose customers due to the hole left by the Indian Premier League, amidst rumours that parent company The Walt Disney Co. is reportedly considering selling its India business.

Disney’s India-focused OTT platform experienced a 24% drop in paying subscribers to 40.4 million in the April-June quarter, down from 52.9 million the previous quarter.

By the end of September 2022, it had 61.3 million customers in Asia. The vast bulk of it came from India, making it the country’s largest streamer by user base, far ahead of competitors Amazon Prime Video (about 20 million) and Netflix (around 6-7 million).

Interim CFO Kevin Lansberry stated at the post-earnings call early on Thursday, “Disney+ Hotstar subscribers declined this quarter as we adjusted our product from one cantered around the IPL to one more balanced with other sports and entertainment offerings. I would also note that this business with its significantly lower ARPU compared to core Disney+ is not a material component of our overall D2C financial results.”

The average revenue per user (ARPU) for Disney+ Hotstar was $0.59, while the ARPU for Core Disney+ was $6.58. The platform attracted a big portion of its subscriber base as a result of the IPL cricket competition, the digital streaming rights to which it has lost to Reliance-backed Viacom18 for the 2023-27 cycle.

Disney+ Hotstar’s fortunes have since changed. Since the end of September 2022, its subscriber base has shrunk by more than 20 million in nine months. Since March 31, the platform has also halted streaming HBO material, including famous dramas such as Game of Thrones, The Last of Us, and Succession.

The Walt Disney Company operates on a calendar that runs from October to September. The Disney+ Hotstar user base was predicted to fall in October-December 2022 and steady in January-March 2023, but the decline has continued.

Disney acquired Rupert Murdoch’s 21st Century Fox in 2018, bringing Star India into its fold. Following the merger of the two media conglomerates, Star India (now renamed Disney Star) includes the streaming app Disney+ Hotstar. There has recently been speculation about Walt Disney selling its India operations.

Meanwhile, JioCinema will broadcast the IPL in 2023 after parent company Viacom18 purchased the digital streaming rights for ₹23,758 crore. The Mukesh Ambani-backed app had 3.2 crore (32 million) concurrent visitors at its peak.

However, it is unclear how many viewers remained on the platform after the IPL 2023 season concluded in May. The company also revealed 100-plus original films and shows, many of which were created just for JioCinema as competition for the top spot in India’s video OTT industry.